BBA

BBA stands for the British Bankers Association. This is the trade organisation of the banks.

Balance Transfer

A balance transfer is the same as moving the outstanding balance (debt) on credit cards, from one to another card usually to obtain a lower interest rate.

Bank

A bank is a business that retains money for its clients, lends money at interest and trades generally in money and the stock market.

Banks Automated Clearing System (BACS)

This is a process for transferring money electronically from one bank to another.

Banker’s Draft

A guaranteed payment cheque delivered from your bank to your home address by registered post. They are more secure than a personal cheque.

Bank of England

The Bank of England’s Monetary Policy Committee sets the interest rates to achieve the Treasury’s inflation target. The BOE is also responsible for the regulation of the banking industry.

Bank Giro Credit (BGC)

A one off cash or cheque payment to an organisation or individual. Processing a payment made using a Bank Giro Credit takes three working days.

Bankruptcy

When an individual cannot pay their debts they are served a bankruptcy order by a court.

Base Rate

The is an interest rate set by the Bank of England upon which all other lending or savings interest rates are based.

BEBR

Bank of England Base Rate. The base interest rate set by the Bank of England.

Beneficiary

The person who is or will be the ultimate recipient of a benefit. Examples could be someone named to receive a legacy under a Will or an individual nominated to receive benefit from a trust fund.

Bonds

Otherwise known as fixed-interest securities, bonds are basically IOUs which are issued by governments, financial institutions and companies. Generally, the issuer undertakes to pay investors a fixed rate of interest for a fixed number of years (e.g. 7% for 5 years). The fact that the interest rate is fixed makes bonds attractive because their return is so predictable. Bonds are traded in open markets, in the same way as shares. (See also Gilts).

Bridging Loans

This is a short-term loan to cover what will eventually be covered by long-term finance. Sometimes a Bridging loan is required by the purchaser of a property who hasn’t yet sold their original house.

BSA

Building Societies’ Association. This is the trade organisation of the building societies.

Building Campaign

A drive to raise funds for construction or renovation of buildings.

Building Society

A financial institution owned by its members (rather than by shareholders).

Broker (Mortgage/Finance)

An intermediary who identifies, and places, customers requiring a loan or mortgage etc. With a company (Lender) able to provide it. The broker undertakes all the applicants research and carries out the administration involved in processing the loan.

Buy-to-let

This is when you buy a property to rent it out rather than live in.